Winning Across Global Markets: How Nokia Creates Strategic Advantage in a Fast-Changing World

302 Pages·2010·1.69 MB·English

by  Dan Steinbock

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Praise for Winning Across Global Markets T
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B W I N N I N G A C R O S S
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“With a miniscule home market in a high technology sector and up against coun-
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tries fi fty times larger, Nokia was thought by many to be fatally disadvantaged. K
They thought wrong. This is an inspiring story, from which we learn that just about HW
G L O B A L
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any circumstance, if confronted with high intelligence and endless perseverance,
W Winning Across Global Markets offers an
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can be turned to competitive advantage.” NN insightful examination of how Nokia, a
—Sir Martin Sorrell, chief executive, WPP O noted Nordic conglomerate, became a
KN
I fi ercely competitive global giant.
A M A R K E T S
“One thousand companies can recognize a strategic opportunity, but only one can I

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grow to dominate the market. Winning Across Global Markets has great insights R In this groundbreaking book, Dan Steinbock
into Nokia’s amazing success story.” EG
A explains how Nokia’s story offers strategic
—Craig R. Barrett, retired CEO and chairman of the board, Intel Corporation TE lessons for other global companies across
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industries. Why? While most large multina-

“Dan Steinbock is a long-standing and outstanding expert on Nokia, one of the SC
tional companies enjoy inherent advantages
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great success stories in the mobile wireless revolution that has changed the world. RR HOW in their home market (which often account
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He has benefi ted from unprecedented access to the company’s insiders. Winning T for 30 to 50 percent of their revenues), a
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Across Global Markets is essential reading for anyone interested in how any high-
G multinational such as Nokia—based in a
tech industry really works.” ICS small country and with a home base market
—Eli M. Noam, director, Columbia Institute for Tele-Information, and professor of AS that generates less than 1 percent of its
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fi nance and economics, Columbia Business School
V revenues—needs to develop an innovative
Dan Steinbock is the research director of AG CREATES STRATEGIC ADVANTAGE
global strategy to thrive. To such a com-
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international business in the India, China, “Since Universal Music Group has been in partnership with Nokia, we have been TL pany, global advantage—centered on local
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and America (ICA) Institute, which is work- consistently impressed by the scale of their business and the determination with GO IN A FAST-CHANGING WORLD success—is a matter of life and death.
ing to foster knowledge on the rise of China which they approach new initiatives. Dan Steinbock’s insights into their strategy E

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and India and their impact on global mar- and values are certain to infl uence future generations of business leaders.” N
Based on exclusive access to and inter-

kets. A senior Fulbright scholar, Steinbock —Lucian Grainge, chairman and CEO, Universal Music Group International AA
views with senior executives of Nokia—from
is also faculty spokesman for the Forum to F
AL the CEO and chairman to regional and
Advance Mobile Experience (FAME), an ini- “Dan Steinbock is not only insightful but also a great storyteller. Whether you are S
T D A N S T E I N B O C K functional chiefs—Winning Across Global
tiative by the CMO Council, whose strategic an analyst, a competitor, or a management student of technology companies, you -M
C Markets provides established industry lead-
interest communities include over 20,000 will benefi t from reading Winning Across Global Markets.” H
AA ers insight into how to develop, capture,
global executives across nearly 100 coun- —Jagdish N. Sheth, Ph.D., Charles H. Kellstadt Professor of Marketing, Emory N and sustain competitive advantage. To am-
tries. He is on the board of journals in the University, and founder, India, China, and America (ICA) Institute GR
I bitious challengers in emerging economies,
U.S., Europe, and Asia, as well as on the NK
G the book offers a primer on how to topple
Market Advisory Board of BusinessWeek. STRATEGY WE the giants.
He divides his time among New York City, $27.95 U.S. | $33.95 Canada OT
Shanghai, and Helsinki. R
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www.josseybass.com
Photo by Academy of Finland

Copyright©2010byDanSteinbock.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData
Steinbock,Dan.
Winningacrossglobalmarkets:howNokiacreatesstrategicadvantageinafast-changing
world/DanSteinbock.—1sted.
p.cm.
Includesbibliographicalreferencesandindex.
ISBN978-0-470-33966-4(cloth)
1.Nokia(Firm)—Management.2.Cellulartelephoneequipmentindustry—Finland—
Management.3.Cellulartelephonesystems.4.Telecommunication—Management.I.Title.
HD9697.T454N65742010
338.7’62138456—dc22
2009051933
PrintedintheUnitedStatesofAmerica
firstedition
HBPrinting10987654321
C
ONTENTS
Introduction 1
1 SuccessThroughLegacyandGlobalization 15
2 StrategyThroughtheExecutiveTeam 37
3 HowNokia’sValues,Culture,andPeopleContributeto
Success 64
4 BuildingaGloballyNetworkedMatrixOrganization 94
5 InnovatingGloballyviaR&DNetworks 114
6 DevelopingStrategicCapabilitiesAcrosstheWorld 142
7 HowNokiaIsGrowingandTransforming
ItsBusinessAreas 169
8 CompetinginGlobalMarkets:TheRiseofLarge
EmergingEconomies 196
9 HowNokiaSeekstoSustainLeadership 219
Nokia’sKeyExecutives 238
Notes 244
Acknowledgments 271
AbouttheAuthor 277
Index 279
v